Mineral Ind

Mineral Industry

Group Members

Syed Farooq Shamim Syed Osama Kadri

Agenda    

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What is Mineral? Mineral & rocks. Types of Minerals. Mineral Industry of Pakistan. Types of Minerals in Pakistan. Review of Minerals in Pakistan. Production Capacity. Effect on Economy

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GDP Contribution Export Imports Mining Areas Environmental damages. Current Scenario Looking Ahead Conclusion Recommendation

QURAN “Do ye not see That God has subjected To your (use) all things In the heaven and in earth And has made His bounties Flow to you in exceeding Measures (both) seen and hidden” Surah Luqman Verse # 20

What is Mineral 

A mineral is an element or chemical compound that is normally crystalline and that has been formed as a result of geological processes.

Minerals & Rocks 

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A mineral is a naturally occurring, inorganic solid with a definite chemical composition and a crystalline structure. A rock is an aggregate of one or more minerals. Some rocks are composed of just one mineral. For example, limestone is a sedimentary rock composed almost entirely of the mineral calcite.

Types of Minerals 

There are currently more than 4,000 known minerals, according to the International Mineralogical Association, which is responsible for the approval and naming of new mineral species found in nature. Of these, perhaps 150 can be called "common," 50 are "occasional," and the rest are "rare" to "extremely rare."

Types of Minerals     

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Talc (Mg3Si4O10(OH)2) Gypsum (CaSO4·2H2O) Calcite (CaCO3) Fluorite (CaF2) Apatite (Ca5(PO4)3(OH,Cl,F) Orthoclase (KAlSi3O8) Quartz (SiO2) Topaz (Al2SiO4(OH,F)2) Corundum (Al2O3) Diamond C (pure carbon)

Mineral Industry Of Pakistan 

The mineral potential of Pakistan is widely recognized to be excellent but its development is slow because of technical, financial and organizational problems. This is evident from the fact that the sector has been allocated very small amount which has ranged between 0.45% to 2.46% of the total public sector expenditure since FIRST FIVE YEAR PLAN.

Types of Minerals in Pakistan        

Mining Oil & Coal Limestone Rock Salt Crude Oil Natural Gas Iron Ore Marble Gypsum

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Tin Copper, Gold, Sliver Coal Steel Uranium China Clay Aragonite Silica Sand

Review of Minerals in Pakistan 

Copper, Gold, and Silver:-

The $323 million Saindak copper, gold, and silver mine in the Chagai District of Balochistan was to be revived through supplementary grants of $29 million by the Government. The operating cost of the mine was estimated to be $330 million per year (Mining Journal, 1999b). Saindak Metals Ltd. had previously sought a short-term loan of $24 million from China to restart the mine and smelter, but nothing had come of that effort. The company planned to lease out its copper mine and smelter for 10 to 15 years. It also sought Iran’s help to supply oil to the mine

Review of Minerals in Pakistan 

Coal:-The coal industry is small with an output of 3 to 4 Mt/yr. The country, however, possesses significant coal reserves. The Geological Survey of Pakistan submitted a plan for the development of new coal mines. The plan was to extract coal for power generation and the cement sector.

Review of Minerals in Pakistan 

Uranium:-The Pakistan Atomic Energy Commission developed a new uranium field in Tumman Leghari in Punjab. The plan was to extract uranium for the country’s nuclearpower-generation facilities in Karachi in Sindh and Chashma in the Mianwali District of Punjab.

Review of Minerals in Pakistan 

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Natural Gas and Oil:-Pakistan’s energy needs

mainly come from oil and gas—natural gas made up 37%, and oil and petroleum products, 44%. The country had 651 billion cubic meters (Gm^3) of proven gas reserves in 1999, but discoveries of new gas fields could add an additional 113 to 396 Gm^3. Pakistan produced 61,000 barrels per day (bbl/d) of crude petroleum in 2004 and has plans to increase its output to 100,000 bbl/d by 2010. Although the country is unlikely to reach self sufficiency, the Government encouraged private firms, which includes foreign firms, to develop domestic production capacity. Pakistan Petroleum Ltd. (PPL) expanded its interests in 2004 by drilling offshore at the Pasni Field. This was the first time that a Pakistani oil company had explored offshore.

Review of Minerals in Pakistan 

Tin:-Consumption of tinplate in Pakistan totaled 187,000 metric tons (t) in 1998. Siddiqsons Tinplate Ltd. Started commercial production of a 120,000metric-ton-per-year. Tinplate line at Winder in Balochistan. Sollac of France and Mitsubishi Corp. of Japan were shareholders in the plant. The $30 million plant was to operate at 70% of capacity in the first year; Sollac contracted to supply 50% of blackplate feedstock, and Mitsubishi, 25%.

Review of Minerals in Pakistan 

Iron Ore:-Iron ore deposits are also mostly of poor quality. The most extensive known reserves are situated in the Kalabagh region in western Punjab. Other low-grade ore reserves have been found in Hazara in the North-West Frontier Province. Small reserves of high-grade iron ore have been identified in Chitral and in the Chilghazi area (located in northwestern Balochistan), also in the North-West Frontier Province.

Production Capacity (In Metric Tonnes)

Mineral

Recourse size

Annual Production

1

Antimony

Small

35

2

Chromite

Small to medium

27,458

3

Aragonite / marble

Large

497,317

4

Granite

Large

5,676

5

Onyx marble

Large

28,780

6

China Clay

Small to medium

61,403

7

Fire clay

Medium

124,003

8

Fuller’s earth

Medium

18,446

9

Barite

Large

26,002

Production Capacity (In Metric Tonnes) Mineral

Recourse size

Annual Production

10

Gypsum

Large

384,513

11

Limestone

Large

8,697,573

12

Magnesite

Large

4,535

13

Marble

Large

408, 000 tonnes

14

Rock salt

Large

157,300

15

Mining & Oil CoalMedium

2.35 million tonnes

16

Crude Oil

Small

15.75 million barrels

17

Natural Gas

Large

15.03 million cubic meters

18

Iron Ore

Medium

955,000 tonnes

Effect on Economy 

Pakistan’s mining and quarrying sector, played a minor role in the country’s economy; these mineral fuels accounted for only 0.50% to 1% of the country’s GDP.

GDP Contribution Table : Share in GDP (Rs. Million)

Year

Share of Mining & Quarrying

Total GDP At current prices

% share

1990-91

6,437

908,374

0.71

1991-92

7,117

1,077,943

0.66

1992-93

7,403

1,200,129

0.62

1993-94

8,664

1,412,858

0.61

1994-95

9,007

1,688,126

0.53

1995-96

11,272

1,929,891

0.58

1996-97

11,483

2,226,580

0.52

1997-98

13,510

2,480,884

0.54

1999-00

16,851

2,922,924

0.58

2000-01

18,369

3,256,412

0.61

Total

106,256

19,558,787

0.57

Saindak Copper Gold Project, Chagi Balochistan

Import 

The major minerals, raw materials imported are iron ores costing Rs 2.8 billion, coking coal Rs 2.6 billion and phosphate rocks Rs 1.08 billion during the year 2001-2002. These items constitute major share of imports that is 22.47%, 21.0% and 8.02% respectively of the total imports.

Export 

According to the study on “EXPORT POTENTIAL OF MINERALS AND CERTAIN MINERAL BASED PRODUCTS” prepared for Ministry of Petroleum and Natural Resources by the Institute of Mining Engineers of Pakistan. Export potential of 10 minerals and 8 mineral based products was established.

Export Commodity

Unit

Quantity

Value (In Thousands)

Marble, Onyx, Block

MT

11,964

230,747

Marble, Onyx, Slab

MT

2,316

57,397

Marble Chips

MT

14,638

50,247

Rock Salt

MT

29,745

49,050

Sea Salt

MT

23,041

8,867

Waste and Scrap of Cast Iron

MT

447

36,158

Chromium Ores and Concentrates

MT

84,153

371,411

Copper waste

MT

1,842

176,643

Chalk

MT

815

3,281

Mining Areas The few potential/major gemstone and mineral mining areas in Pakistan are:  Northwest Frontier Province 1. Swat (Malakand division) 2. Dir (Malakand division) 3. Mansehra (Hazara division) 4. Kohistan (Hazara division) 5. Peshawar district (Frontier province)

Mining Areas  1. 2. 3. 4.  1. 2.

Federally Administered Tribal Areas Mohmand Agency Bajaur Agency Khyber Agency North and South Waziristan Agencies Baluchistan Province Kharan district Chaman (near Quetta)

Mining Areas     

Himalayan Crystalline Belt Kohistan - Island Arc Karakoram Block Chagai Arc Makran Trench Zone

Environmental Damages 

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Environmental considerations are obligatory elements in mining ventures. The Environmental Protection Agency (EPA) of Pakistan is responsible for overall environmental policy, law, regulations and management at the Federal level. The main concerns of EPA on mining are so far related to coal, mercury emissions from coal burning, fluorite, asbestos and quarry dust near major cities. The use of cyanide in mining becomes more and more controversial. Cyanide is highly poisonous, lethal to humans by blocking the ingestion of the oxygen by cells.

Current Scenario 

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Presently, mineral exploration, to large extent, is in the early stages of first ‘CYCLE’ of modern exploration in which exploration is aimed at the discovery of large outcropping mineral deposits rather than buried or blind deposits which require high technology, high risk & expensive exploration programme. In spite of the fact that the nature of Mineral industry is different from other industries i.e. complex, complicated, heterogeneous, risky, capital intensive, require long gestation period etc it faces other problems that contribute to its slow and/ or restricted growth resulting in its contribution to GDP that on an average ranges between 0.5% to 1.0%, unchanged over the last many decades.

Looking Ahead 

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What lies ahead for the Mineral Industry of Pakistan? As constituted today, it bears little resemblance to the sector projected in official documents, studies & recommendations made in various committees, seminars and workshops held decades ago. The full spectrum of Mineral Sector particularly when the industry is so vast, complex and difficult to see twists and turns that future may bring.

Conclusion 

Because of favorable geological environment, Pakistan is richly endowed with the diversity of mineral potential. However, its development remained slow because of technical, financial, organizational and other problems inherent in the nature of mineral industry. Inspite of all these indigenous and external problems, vigorous efforts have been and are still being made to built the mineral sector as a potential factor in the national economy.

Recommendation 

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As recommended by Asian Development Bank Mission in Islamabad, feasibility studies of the projects of minerals should be carried out in order to ascertain their viability. Latest technology must be used to explore mineral deposits. Technology should also be used in mining and other mineral preparing processes.

Thank You